I purchase the commercial property ( one store and two apartments) in March 2018. The total purchase cost was
$172,157.00 . I sold it on Sept 9 , 2021. In 2021 I did some improvement which cost about $50,000.
Question 1.
Do I put the improvement cost $50,000 as expense in 2021 or I can add $50,000 as basis cost ?
Question 2,
The first year depreciation with 39 years straight line is 158,657( exclude land cost) * 2.033%=3221
The second year and 3rd year's depreciation is 158,657*2.564%=4068
I don't how I can calculate the depreciation of 2021.
1.which month and which percentage do I use?
2. Can I add $50,000 to $158,657 as the basis cost to calculate 2021 depreciation?
Thanks,
